Investing for income in the high yield bond market

Investing for income in high yield bond markets

Higher yields are now available for income investors, particularly those investing in the high yield bond market.

But where do opportunities lie and what do fund managers look for when building out their portfolios?

In this video, Rhys answers these questions and explains how he generates ideas and income for the Invesco Bond Income Plus Limited portfolio.

00:17 - What is your background, sector expertise and what is your role in the investment trust?

01:22 - What is the Trust’s investment objective?

02:05 - How does the Trust generate income?

03:43 - How would you describe the investment process, and can you talk us through how you generate an idea for the Trust?

05:21 - Are you trading at a premium or discount to net asset value (NAV) and how does that compare to your sector?

06:22 - What are the fees and how do they compare?

Want to know more?

Rhys Davies is a fund manager and senior credit analyst in the Henley-based Fixed Interest Team and manages high yield credit portfolios. Click the links to find out more about the products he manages:

Invesco Bond Income Plus Limited
Invesco Monthly Income Plus Fund (UK)

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    The Invesco Bond Income Plus Limited has a significant proportion of high-yielding bonds, which are of lower credit quality and may result in large fluctuations in the NAV of the product.

    The Invesco Bond Income Plus Limited may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.

    The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.

    The Invesco Bond Income Plus Limited uses derivatives for efficient portfolio management which may result in increased volatility in the NAV.

Important information

  • All information as at 17 July 2023, unless otherwise stated.

    Views and opinions are based on current market conditions and are subject to change.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available on the website:

    Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.

    If investors are unsure if this product is suitable for them, they should seek advice from a financial adviser.

    Invesco Bond Income Plus Limited is regulated by the Jersey Financial Services Commission.